Tuesday, 2 December 2014

Nigerian Banks Lose N21.7 Billion To Fraudsters In 2013 Financial Year - NDIC

The Nigeria Deposit Insurance Corporation has announced the loss of N21.7 Billion to bank frauds in 2013 financial year with a total of 3,756 fraud cases.
The corporation in its 2013 Annual Report and Statement of account for the banking sector said that the reported cases of 3,756 for 2013, represents an increase of 11.12 per cent over the 3,380 fraud incident which the sector recorded in 2012.

The report, which was released today, was jointly signed by the NDIC Board Chairman, Dr. Hassan Adamu and the Managing Director, Alhaji Umaru Ibrahim.

The report said that while the frequency of fraud cases rose by 11.12 per cent within the period under review, the sector recorded a 20.8 per cent increase in monetary value from N18.05bn in 2012 to N21.79bn.

In terms of actual loss from these fraud cases, the report said the sum of N5.75bn may not be recovered, adding that this is N1.24bn or 27.4 per cent higher than the N4.51bn recorded in 2012.
“A total of 275 responses were received from 21 commercial banks, one non interest bank and two merchant banks during the year under review.

“Out of the 272 responses received, 3,756 fraud cases were reported in 2013 as against N21.79bn reported in 2012, showing  an increase of 11.12 per cent.
“There was also a 20.8 per cent increase in the amount involved as N18.05bn as reported in 2012 as against N21.79bn reported in 2013.

“Also, the expected/actual loss increased by N1.24bn or 27.4 per cent from N4.52bn in 2012 to N5.76bn in 2013.”
The report added, “The highest expected/actual loss of N2.5bn occurred in the first quarter ended March 2013, which represented 47.4 per cent of the total industry expected/actual loss.”
Giving a quarterly breakdown of the amount involved, the report stated that N7.80bn fraud was recorded in the first quarter while the second, third and fourth quarters had N4.85bn, N3.84bn and N5.28bn respectively.

In terms of number of fraud incidence, the report explained that 983 cases were recorded in the first quarter while the second, third and fourth quarter each had 768, 1,067 and 938 cases respectively.
For the proportion of losses, the report said that N2.51bn is expected to be lost in the first quarter, while the sum of N1.16bn, N906m and N1.18bn was lost in the second, third and fourth quarters respectively. 

Greenbarge Reporters